It was a decent day’s work yesterday. We’ve seen EUR/USD and GBP/USD top out for losses. USD/JPY may have seen a low but there’s still potential for an expanded flat to extend losses. So this pair remains rather vague at the moment. Equally, while USD/CHF actually made some decent gains, we’ve not yet confirmed a second 5-wave rally. Therefore, there is a mild risk of a break below 0.9901. If we do see the break above 0.9955 it will tend to suggest a Wave i and for a pullback in Wave ii.
Thus, the two safer majors – EUR/USD and GBP/USD – are probably the best pairs to trade. Well, perhaps I can add AUD/USD also to EUR and GBP to safer outlooks. These three seem to require a minor follow-through and a reversal.
EUR/JPY? Pretty much the same as EUR/USD and GBP/USD – minor follow-through and a deeper pullback… Whether we get to complete the corrections today or not is the question… I’d like to think that we could see a reversal after the pullback… but in this sultry weather I’m not totally convinced…